Problem $9-14$ Project Evaluation $[$LO $2]$

Dog Up$!$ Franks is looking at a new sausage system with an installed cost of $$660,000.$ This cost will be depreciated straight$-$line to

zero over the project's $5-$year life, at the end of which the sausage system can be scrapped for $$86,000.$ The sausage system will save

the firm $$185,000$ per year in pretax operating costs, and the system requires an initial investment in net working capital of $$37,000.$

What is the aftertax salvage value of the equipment?

Note: Do not round intermediate calculations and round your answer to the nearest whole number, e$.$g$.,32.$

Aftertax salvage value

What is the annual operating cash flow?

Note: Do not round intermediate calculations and round your answer to the nearest whole number, e$.$g$.,32.$

OCF